The eccentric singer is reported to have paid £1 million to rent a large country house near the edge of an ancient 22-mile maze of haunted passageways.
The undisclosed home is thought to be close to the Chislehurst Caves in Bromley, in the south-east suburbs of London.
Ghost sightings have been reported at the caves, which were dug in chalk by the Saxons, Druids and Romans.
A property source told The Sun: "His team signed up this week to stay there. We're not sure if he knows about the caves but they're all around."
The 50-year-old star sent aides to find the perfect country retreat before his first gig in London on July 8.
The three-storey pile – built in the 1800s – has quarters for 20 staff as well as an underground cinema, music room, indoor swimming pool, lake and private wood.
Closed circuit television cameras and state-of-the-art alarm systems will prevent fans getting anywhere near the star during his series of 50 concerts.
It was revealed earlier that Jackson has stumped organisers of his concerts by asking to ride an elephant onto the stage as part of a jungle theme.
He was reported to have asked for a panther, snakes, tropical birds and three monkeys for a set that will have a jungle, circus and weather theme during the shows.